Citizens launches clearinghouse

State-run property insurer Citizens said it processed 500 requests for information by noon of its launch of a new clearinghouse today and a company official said the system seems to be functioning properly.
It’s early in the process and many inquiries at this point are tests, officials said.
The system is designed to shrink Citizens by making would-be customers ineligible if a private insurer is offering coverage priced up to 15 percent more. During the second quarter of the year, renewing Citizens customers will not be able to stay with the company if a private insurer is offering coverage priced the same or less.
The launch was delayed from Jan. 2 to Monday so participating insurers could get better prepared technologically, officials said. The number of carriers initially taking part has gone from from four to an expected seven back to four. The launch comes in a rocky few months for government websites, with the federal healthcare.gov and the state’s unemployment website having more than a few well-publicized problems.
“The clearinghouse is functioning successfully and we are pleased with the preliminary results,” said Steve Bitar, Citizens vice president of consumer and agent services. “As of noon, over 500 quotations requesting insurance coverage have been entered into the system. We are continuing to monitor clearinghouse activity and expect to have more detailed information available at the Board of Governors meeting Wednesday. The initial response has been very positive.”
Brightway Insurance agent Bill Goldman of Jupiter noted the clearinghouse does not necessarily represent all the options a consumer may have, so homeowners may want to keep in mind they can still shop around.
“If you’re put through Citizens’ clearinghouse, you’ll get quotes from just a small subset of companies in the state,” Goldman said.
Those participating initially include Ark Royal, Florida Peninsula, Safe Harbor and United Property & Casualty, Citizens said.
Up to 16 more carriers are expected to join the clearinghouse in March through July, including Heritage Property and Casualty of St. Petersburg. That’s the start-up company that contributed $110,000 to Gov. Rick Scott’s Let’s Get to Work committee last year shortly before winning a controversial contract that paid it up to $52 million to take Citizens customers in a transfer program. Most carriers did not get special payments.
The transfer programs have been around for years, but the clearinghouse is new.
Citizens has more than 1 million customers including more than 100,000 in Palm Beach County, making it still the biggest insurer locally and statewide.